United States v. Stuart et al. (489 U.S. 353)

U.S. Supreme Court · decided February 28, 1989 · Supreme Court Database (Spaeth)

Citation
489 U.S. 353 · 109 S. Ct. 1183
Decided
February 28, 1989
Term
October Term 1988
Vote
9–0
Majority author
Justice Brennan
Issue area
Miscellaneous
Disposition
Reversed and remanded
Outcome
Petitioning party won
Ideological direction
Unspecifiable

Opinion excerpt

Justice Brennan delivered the opinion of the Court. Articles XIX and XXI of the Convention between the United States and Canada Respecting Double Taxation, Mar. 4, 1942, 56 Stat. 1405-1406, T. S. No. 983, oblige the United States, upon request and consistent with United States revenue laws, to obtain and convey information to Canadian authorities to assist them in determining a Canadian taxpayer’s income tax liability. The question presented is whether the United States Internal Revenue Service may issue an administrative summons pursuant to a request by Canadian authorities only if it first determines that the Canadian tax investigation has not reached a stage analogous to a domestic tax investigation’s referral to the Justice Department for criminal prosecution. We hold that neither the 1942 Convention nor domestic legislation imposes this precondition to issuance of an administrative summons. So long as the summons meets statutory requirements and is issued in good faith, as we defined that term in United States v. Powell, 879 U. S. 48, 57-58 (1964), compliance is required, whether or not the Canadian tax investigation is directed toward criminal prosecution under Canadian law. I Respondents are Canadian citizens and residents who maintained bank accounts with the Northwestern Commercial Bank in Bellingham, Washington. In attempting to ascertain their Canadian income tax…

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